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The Bank of Japan is expected to end its experiment with negative interest rates in the coming weeks, making it the last central bank to do so. This move marks a shift towards mainstream policy after years of unconventional measures. While negative rates helped weaken the yen and prevent deflation, they did not significantly impact inflation, which was primarily driven by external factors. The effectiveness of negative rates has been mixed, with some central banks claiming success while others have exited the policy. Despite the end of negative rates in Japan, borrowing costs are expected to remain close to zero for the foreseeable future. [Extracted from the article]

Japan's economy experienced its deepest contraction since the pandemic, with gross domestic product shrinking at an annualized rate of 2.9% in the third quarter of 2023. Weak domestic spending, particularly in private consumption, contributed to this decline. The revised figures indicate that Japan's economic recovery has lost momentum, and the outlook remains uncertain due to slowing overseas economies and persistent inflation. These numbers complicate the policy path for the Bank of Japan as it considers ending its negative interest-rate policy. However, some market speculation suggests a potential shift in policy as early as this month. [Extracted from the article]

Japanese life insurers have significantly reduced their currency hedging, indicating a decreased concern about the yen strengthening and eroding returns from overseas assets. The hedge ratio, which measures the percentage of foreign securities protected by derivatives, dropped by nearly five percentage points, the largest decline since 2011. This reduction in hedging, coupled with an increase in holdings of overseas assets, suggests that these insurers believe yen weakness will persist and that any tightening of monetary policy by the Bank of Japan will be gradual. The yen has depreciated against other major currencies due to divergent monetary policies and Japan's weak trade balance. While a slowdown in overseas economies could increase the likelihood of central banks unwinding their policy tightening, it could also lower currency hedging costs for insurers. [Extracted from the article]

Japan's recent auction of 20-year government bonds saw strong investor demand, likely due to falling long-term US debt yields and a strengthening yen, which reduced speculation of an imminent central bank policy change. The minimum bid price for the bonds was higher than expected, indicating investors were willing to pay more for the debt. The bid-to-cover ratio was higher than the previous auction, and the tail was lower, suggesting a strong bid. Yields on Japan's 20-year sovereign bonds have fallen in response to slower-than-expected US inflation data and a contraction in Japan's GDP. [Extracted from the article]

Such speculation has been persistent even as the BOJ's Ueda repeatedly said the bank has yet to project inflation will be anchored above its 2% target and therefore the bank will need to keep up easing. (Bloomberg) -- Japan's economy expanded at a faster pace than expected as a further easing of pandemic regulations boosted consumption, a positive outcome that will likely keep speculation simmering of a possible early election and potential central bank policy change. [Extracted from the article]

Still, Bank of Japan Governor Haruhiko Kuroda told parliament that there's a need to carefully watch for any impact from SVB's collapse. (Bloomberg) -- Concerns about Silicon Valley Bank's failure are "extremely unlikely" to spread to Japan, according to the nation's top regional banker. On Wednesday, most banking stocks rose across Asia Pacific as concerns over a broader fallout from Silicon Valley Bank's sudden collapse eased. [Extracted from the article]

(Bloomberg) -- Japan's mom-and-pop investors are taking the opportunity of intervention-driven yen surges to build up bets on further weakness in the beleaguered currency. The proportion of individual investors making bearish bets on the yen surged to 68% this week, the highest since August, according to data from Japanese currency broker Gaitame.com. [Extracted from the article]

(Bloomberg) -- Japan's mom-and-pop investors are taking the opportunity of intervention-driven yen surges to build up bets on further weakness in the beleaguered currency. Economists expect the central bank to keep its policy unchanged again at its two-day meeting ending Friday, a decision which could trigger further yen weakness. [Extracted from the article]

(Bloomberg) -- Japan's mom-and-pop investors are taking the opportunity of intervention-driven yen surges to build up bets on further weakness in the beleaguered currency. The proportion of individual investors making bearish bets on the yen surged to 68% this week, the highest since August, according to data from Japanese currency broker Gaitame.com. [Extracted from the article]

Finance Minister Shunichi Suzuki told reporters Monday that Japan was in a tough standoff with speculators and couldn't tolerate excessive currency moves, speaking before the yen rally. (Bloomberg) -- The yen rallied more than 1% against the dollar, reversing an earlier drop, amid signs of a second intervention from Japanese authorities in two sessions. [Extracted from the article]

Japan's bond market has been roiled by speculative attacks this year as traders bet accelerating global inflation would force the BOJ to tweak policy. (Bloomberg) -- Foreign investors snapped up a record amount of long-term Japanese bonds in July amid a global debt rally and as expectations for a central bank policy tweak faded. [Extracted from the article]

Some 27 out of 36 respondents in a Bloomberg survey of economists see Kono winning the race to replace outgoing premier Yoshihide Suga in a party election Sept. 29. (Bloomberg) -- Vaccine czar Taro Kono is seen winning elections this month to become Japan's next prime minister, supporting more stimulus for the pandemic-hit economy and continuity in central bank policy at least for now. [Extracted from the article]

Discusses Japan's economy. Prime Minister Keizo Obuchi's program for reviving the economy; Questions concerning allocation of funds to banks; Opposition from Democratic Party leader Naoto Kan; Attempts to rebuild the banking system; Priority of the Liberal Democratic Party legislators; The role of the United States in Japan's economic recovery; Criticism of Obuchi.

(Bloomberg) -- Wall Street and Japan's largest banks are starting to see eye to eye on the yen's outlook, saying its advance could break the barrier of 100 per dollar next year. "Compared to past years, more Japanese seem to forecast the dollar weakness and yen appreciation to progress a bit further next year." Yen Rally Past 104 Sets Stage for Showdown With Speculators Moreover, some now consider the yen undervalued based on purchasing power parity after years of pressure from aggressive central bank policy. [Extracted from the article]

(Bloomberg) -- Wall Street and Japan's largest banks are starting to see eye to eye on the yen's outlook, saying its advance could break the barrier of 100 per dollar next year. Yen Rally Past 104 Sets Stage for Showdown With Speculators Moreover, some now consider the yen undervalued based on purchasing power parity after years of pressure from aggressive central bank policy. [Extracted from the article]

The article reports that Japan is under foreign pressure to improve its banking system. After getting fed up with Japan's lack of progress in sorting out its economy and its banking mess, the U.S. has dispatched Larry Summers, the number two at the Treasury, to read the riot act to the Japanese government. Summers said, the yen will fall again unless Japan takes immediate steps to reform and resuscitate its economy.

Discusses the state of the Japanese economy as of September 28, 1998. Problems with the banking industry; Liquidation of the Long-Term Credit Bank of Japan; Further decline in the economy; Bankruptcies of local governments; Challenges to the central government; Few options to revive the economy.

Discusses the reason the Japanese are insisting on financial reform among its banking industry in 1997. The association of bank executives with the underworld; The efforts of Japan's Prime Minister Ryutaro Hashimoto; The reforms being called Bigu Ban, which means Big Bang.

Opinion. Explains why the Japanese government will not let any big institutions fail. Protecting creditors in the event of criminal fraud, such as the fraud committed by Daiwa Bank; Tax-free bonds issued by United States municipalities but guaranteed by Japanese banks.

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Reports on the plan of the Bank of Japan to buy shares held by the country's major banks. Importance of the plan of the Bank of Japan; Estimation on the amount of shares the Bank of Japan will buy; Crisis facing the financial sector of the country.

Focuses on banking reform in Japan. Selection of economy minister Heizo Takenaka as financial affairs minister; Possible paths for bank reform, including the strengthening of the state loan-collection agency and a requirement that regulators use stricter rules to reclassify banks' non-performing loans; Importance of public funds; Impediments to reform, including the support of the Financial Services Agency and an unwillingness of banks to admit weaknesses; Outlook for reform.

Focuses on Japanese government policy regarding banking institutions. Decision of the government to lift its blanket protection of deposits, which it fears may trigger more economic crises; Details of a so-called controlled collapse of these banks' largest debtors, including the Daiei supermarket chain; Factors affecting the ultimate success of this plan, including unforeseen corporate bankruptcies.

Reveals that the Japanese government's bank rescue plan conceals a looming crisis of corporate debt. Determination of nonperforming loans (NPL) based on old and new standards; Establishment of an agency patterned after the United States Resolution Trust Corp.; Need for bank mergers. INSET: Overleverage uncovered.

Looks at Japan's creation of bridge banks to deal with the banking reform problems. How the bridge banks may make the situation worse for Japan; Why bridge banks were created in the United States; Differences between the bridge banks of Japan and of the US; Speculation on the effects of the Japanese bridge banks.

Discusses banking deregulation practices in Japan. Asserts that recent policies in this vein have prompted an economic miracle; Why mergers have produced positive fiscal results; Additional information.

Discusses how a growing number of banks in Japan are letting troubled debtors restructure their obligations, accepting interest rates reduced to the level of the official discount rate or even lower. In addition, the government has given banks a tax break to make such deals more attractive. The tax system as it stands now; Wrong approach to take.

Discusses how that ever-meddling finance ministry in Japan is preparing yet again to pull out the stops to help Japan's debt-burdened banks. Public money has been propping up the stockmarket since November. Repeal of a previous ban on banks reporting losses; Resources at their disposal.

Reports on the Japanese government's plan to bail out the country's banking system. Stock market's reaction to government's bailout effort; Banks' non-performing loans; Banking problem's impact on the country's economy.

This article discusses deregulation in banks by the Japan Financial Services Agency despite concerns about the role of conglomerates of investment and commercial banks in the global financial crisis of 2008-2009. These laws simplify the legal processes by which the banking and securities management units of firms can work together. The goal of this legislation is to increase self-regulation and increase the role of capital markets in business financing.

Reports that Heizo Takenaka has been appointed by Japanese Prime Minister Junichiro Koizumi to oversee the privatization of Japan Post, the world's largest bank. Role of Takenaka on issues of economic reform; Statement that the postal bank is a reason why private banks cannot gain access to parts of the credit market; Difficulty of restructuring the postal system in Japan; Opposition Takenaka faces from legislator Fumio Kyuma.

Examines the problems of Japan's economic reform efforts. The economic decline of the 1990s; Efforts to reform the banks; Potential changes in monetary policy; Japanese politicians' desire to maintain consensus in their reform efforts; Criticism of Prime Minister Yoshiro Mori's leadership ability.

Examines Japan's banking crisis. How the Hokkaido Takushoku Bank was turned around by Iwao Takamuki; Why this is not a good example of how to turn the banking system around; Why local companies dealing with Takushoku Bank are endangered; Problems with the Japanese banking system; Nationalization of Long-Term Credit Bank; Generous tax treatments of banks by the government.

Presents information on how Naoto Kan, the leader of the Democratic Party of Japan (DPJ) was out maneuvered by the Liberal Democratic Party (LDP) in the bank rescue plans of October of 1998. LDP splitting the opposition and forcing a rescue plan through the parliament, the Diet; LDP cutting deals with the Social Democratic Party of Japan, the Liberal Party and the Heiwa-Kaikaku Buddhist group; Details on the agreements.